Research report

Improve Revenue Forecast Accuracy With Emerging Forms of Sales Forecasting Technology

According to Gartner, “Traditional B2B sales forecasts are often inaccurate, leading to missed sales targets and budget shortfalls (S&OP).” “B2B Sales forecasting is not a simple process and full of uncertainty. This is caused by several factors:

  • An increase in the number of decision makers in complex deals lengthens deal cycles
  • The buyer’s purchasing journey is not linear, but sellers are expected to forecast revenue as if it is
  • Inexperienced sellers are not skilled at reliably collecting and interpreting prospects’ buying signals”

According to Gartner, “These issues represent considerable challenges. In Gartner’s 2019 State of Sales Operations Survey, many organizations reported low confidence in forecast accuracy, ranging from sales leaders to quota-carrying sellers. This can be attributed to a variety of factors ranging from: 

poor data governance to poor data quality challenges, which can arise from inconsistent data integrations and standards, as well as poor sales behaviours when inputting data fields”

According to Gartner, “Organizations do not have to accept that sales forecasting has always been, and will continue to be, difficult. In this research, Gartner describes the newest technology for sales forecasting, including new tools for complex forecasting processes, pipeline inspection capabilities and predictive forecasting capabilities, and the impacts these technologies are likely to have”

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and is used herein with permission. All rights reserved.

Gartner, Improve Revenue Forecast Accuracy With Emerging Forms of Sales Forecasting Technology, 8 April 2020, Adnan Zijadic, Alastair Woolcock, Theodore (Tad) Travis